The US government just delivered its biggest blow yet to Huawei

Trump takes first step toward U.S. ban on Huawei products

With all the news-related activity around Huawei, some of which is even actual news, we've made a decision to stop chronicling each minute twist and turn around the Chinese telco kitmaker and its security woes as they happen, and instead slice and dice them for your delight and delectation.

The executive order doesn't mention Huawei or China at all, but CNN reports that the Commerce Department added Huawei to a so-called "Entity List" following the order.

The President's executive order gives the federal government the power to bar American companies from doing business with foreign suppliers that could pose a threat to national security such as the Chinese firm Huawei.

The order doesn't mention Huawei or China by name, but it was widely seen as targeting Huawei and other Chinese companies such as ZTE. Foreign Ministry spokesperson Lu Kang accused the United States of "abus [ing] export control measures while making "national security" a catch-all phrase". Similar comments were repeated in a separate Ministry of Commerce press conference later the same day.

It's also telling that Trump's order came after trade talks with China failed.

A broad USA crackdown, announced on Wednesday in an executive order, was the latest shot fired in an escalating trade war that is rattling financial markets and threatens to derail a slowing global economy.

Richard Dearlove said, in the forward to a report by the Henry Jackson Society thinktank, the fact that the United Kingdom government "now appears to have chose to place the development of some its most sensitive critical infrastructure in the hands of a company from the People's Republic of China (PRC) is deeply worrying".

Greater implications - Huawei relies on U.S. components to supply its customers worldwide. "In addition, unreasonable restrictions will infringe upon Huawei's rights and raise other serious legal issues".

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In August, Trump signed a bill that barred the USA government itself from using equipment from Huawei and ZTE. Accordingly, there's some speculation that the Huawei gambit is meant mostly as a negotiating card - that Trump is hoping he can do Xi another "favor" (as he described the ZTE reversal) in exchange for concessions in the trade negotiations. Even software suppliers like Google would have to apply for explicitCommerce Departmentpermission to update Huawei's smartphone operating systems, which run on Google Android. With Taiwan's robust capabilities in the telecom industry and computer component manufacturing, the country should capitalize on the disrupted global supply chain in the wake of the Trump administration's Huawei ban.

If Trump is waiting for Xi to come begging for a reprieve, though, he's misread the changed circumstances.

The company reported first-quarter revenue of $27bn last month and said it had shipped 59 million smartphones in the first quarter. -China trade war stalled last week, the United States ramped up the pressure by raising tariffs on a list of $200 billion worth of Chinese imports to 25% from 10%. They are warning other countries that the company is a national security risk.

The moves expand a trade war between the USA and China.

As negotiations towards resolving the U.S.

As you may have noted in previous trade talks, the USA repeatedly rejected rules in consultations and brought difficulties to the talks, while China, on the other hand, has been acting in a constructive spirit all along. The worldwide community bears witness to all this.

President Trump's executive order did not go as far as to name any companies or countries specifically but it will likely do the opposite of improving relations between the USA and China.

"What these trade negotiations could mean for us is that maybe then the USA government would be willing to talk with us", he said.

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